NEWS
Cyan C3G Fund
13 Dec 2016 - Australian Fund Monitors
Cyan C3G Fund returned -2.5% in November, to take the latest 12-months to +21.17%.
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13 Dec 2016 - Cyan C3G Fund
By: Australian Fund Monitors
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| Fund Overview | Cyan C3G Fund is based on the investment philosophy which can be defined as a comprehensive, clear and considered process focused on delivering growth. These are identified through stringent filter criteria and a rigorous research process. The Manager uses a proprietary stock filter in order to eliminate a large proportion of investments due to both internal characteristics (such as gearing levels or cash flow) and external characteristics (such as exposure to commodity prices or customer concentration). Typically, the Fund looks for businesses that are one or more of: a) under researched, b) fundamentally undervalued, c) have a catalyst for re-rating. The Manager seeks to achieve this investment outcome by actively managing a portfolio of Australian listed securities. When the opportunity to invest in suitable securities cannot be found, the manager may reduce the level of equities exposure and accumulate a defensive cash position. Whilst it is the company's intention, there is no guarantee that any distributions or returns will be declared, or that if declared, the amount of any returns will remain constant or increase over time. The Fund does not invest in derivatives and does not use debt to leverage the Fund's performance. However, companies in which the Fund invests may be leveraged. |
| Manager Comments | A number of the Fund's holdings contributed to the underperformance. The main declines came from Vita Group, Freelancer, Speedcast, Abundant Produce and Adacel. However, Afterpay, one of the Fund's larger holdings, indicated further growth to their already thriving payments business and contributed positively to the Fund (AFY +15%). Other positive contributors were BlueSky (BLA) which rose 5%, Nick Scali (NCL) +8% and SRG Group (SRG) +10%. Currently, the Fund is 50% in cash and hence is well placed to take advantage of attractive opportunities or when the uncertainty clears. Click below to read the latest Fund Manager's Report. |
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Fund Review: Bennelong Long Short Equity Fund November 2016
12 Dec 2016 - Australian Fund Monitors
November Fund Review is now available on Bennelong Long Short Equity Fund which has an annualised return of 16.49% p.a.
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12 Dec 2016 - Fund Review: Bennelong Long Short Equity Fund November 2016
By: Australian Fund Monitors
AFM Fund Review - November 2016 (pdf format)
BENNELONG LONG SHORT EQUITY FUND
Attached is our most recently updated Fund Review on the Bennelong Long Short Equity Fund.
- The Fund is a research driven, market and sector neutral, "pairs" trading strategy investing primarily in large large-caps from the ASX/S&P100 Index, with over fourteen-year track record and annualised returns of 16.49%.
- The consistent returns across the investment history indicate the Fund's ability to provide positive returns in volatile and negative markets and significantly outperform the broader market. The Fund's Sharpe Ratio and Sortino Ratio are 0.99 and 1.63 respectively.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - November 2016 (pdf format)
Paragon Australian Long Short Fund
9 Dec 2016 - Australian Fund Monitors
The Paragon Australian Long Short Fund returned -7.9% in November and +23.11% for the latest 24-months.
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9 Dec 2016 - Paragon Australian Long Short Fund
By: Australian Fund Monitors
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| Fund Overview | Paragon believes that markets are not always efficient, exhibiting a common tendency to price securities well outside of their intrinsic value over the medium term. This market characteristic provides the opportunity for Paragon, an active manager with a flexible mandate, to generate superior investment returns over the longer term. Paragon believes that it is critical to understand both the companies and the industries in which they operate, in order to fully comprehend each investment opportunity. Accordingly, a fundamental approach to company research is taken. Assessing the potential downside is also paramount in framing the risk/reward trade-off for potential investments. |
| Manager Comments | The rise in bond yields, amplified by Trump's surprise election victory early in November, and with his substantial fiscal promises, has continued to drive the market rotation away from long duration, growth and gold stocks which the Fund has had reasonable exposure to since the fund's inception. The investment team has derisked the portfolio and also repositioned some of the stock holdings. The Fund continues to own key structural theme-led stocks that are expected to perform well over time. At month-end, the Fund had 27 long positions and 6 short positions and cash composed nearly 41% of the portfolio. Click below to read the latest monthly report. |
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Optimal Australia Absolute Trust
9 Dec 2016 - Australian Fund Monitors
The Optimal Australia Absolute Trust rose 0.95% in November 2016, to take the annualised return since inception to 8.59% p.a.
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9 Dec 2016 - Optimal Australia Absolute Trust
By: Australian Fund Monitors
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| Fund Overview | The Fund's bias is likely to be net long under normal market conditions, with the core strategy being to construct a portfolio of listed equity securities priced at levels that do not adequately reflect their underlying value. The Fund will seek to boost returns and limit potential market downside by selective short selling of individual stocks which are priced at levels that are viewed as materially above their underlying value. The Fund will also use certain trading strategies both within its core portfolio (through rebalancing stock weights and overall market exposure in response to price movements) and in certain other situations (typically of a shorter-duration and/or opportunistic nature) with the objective of further increasing returns. |
| Manager Comments | The positive performance came from the Fund's holdings in financials (ANZ, Clydesdale, Suncorp, Hendersons), resources (Orocobre) and materials. During the month, the Fund initiated a new long position in APN, which has rationalised itself down to two attractive media exposures in radio and outdoor advertising and at a discounted valuation arising from technical pressure around its recent capital raising. Hedging the market risk through short selling was successful in the interest-rate sensitive stocks. The Fund had slightly positive net market exposure (+2.4% of NAV) at month-end and retains some scepticism about the sustainability of the 'Trump bump'. Click below to read the latest Fund monthly report. |
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Bennelong Long Short Equity Fund
8 Dec 2016 - Australian Fund Monitors
Bennelong Long Short Equity Fund returned -2.24% in November and up 26.68% for the latest 24-months.
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8 Dec 2016 - Bennelong Long Short Equity Fund
By: Australian Fund Monitors
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| Fund Overview | In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years. The Bennelong Market Neutral Fund, with same strategy and liquidity is available for retail investors. |
| Manager Comments | The Fund's under-performed was due to an even mix of winning and losing pairs with no particular position having a disproportionate impact on return. The top 3 spreads for the month came from the following pairs; Long Quantas/Short Flight Centre, Long Adelaide Brighton/Short Boral and Long IIuka/Short Downer. The month's market rotation out of the higher quality and defensive names toward lesser quality names on lower multiples or with cyclical potential hasn't caused the Fund to change its portfolio position. Instead, the investment team accepts that their preferences to be long in business with better growth prospects can sometimes lead the long book to trade at a price-premium to the short book. Hence, exposing the Fund to under-performance if either the premium becomes stretched or sentiment changes. However, the Fund has no plans to adjust its current positions unless justified by changes in the fundamentals. Click below to read the Fund Manager's commentary and market outlook. |
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Fund Review: Insync Global Titans Fund October 2016
2 Dec 2016 - Australian Fund Monitors
Latest Fund Review on Insync Global Titans Fund is now available.
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2 Dec 2016 - Fund Review: Insync Global Titans Fund October 2016
By: Australian Fund Monitors
AFM Fund Review - October 2016 (pdf format)
INSYNC GLOBAL TITANS FUND
Attached is our most recently updated Fund Review on the Insync Global Titans Fund.
We would like to highlight the following:
- The Fund's unit price decreased by -3.80% in October. The performance was driven by positive contributions from our holdings in Time Warner, Microsoft, PayPal, Visa and Moody's. The main negative contributors were Unilever, Comcast, eBay, BAT and Zimmer.
- The Global Titans Fund invests in a concentrated portfolio of 15-30 stocks, targeting exceptional, large cap global companies with a strong focus on dividend growth and downside protection.
- Portfolio selection is driven by a core strategy of investing in companies with sustainable growth in dividends, high returns on capital, positive free cash flows and strong balance sheets.
- Emphasis on limiting downside risk is through extensive company research, the ability to hold cash and long protective index put options.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2016 (pdf format)
Fund Review: Bennelong Twenty20 Australian Equities Fund October 2016
30 Nov 2016 - Australian Fund Monitors
Latest Fund Review on Bennelong Twenty20 Australian Equities Fund is now available.
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30 Nov 2016 - Fund Review: Bennelong Twenty20 Australian Equities Fund October 2016
By: Australian Fund Monitors
AFM Fund Review - October 2016 (pdf format)
BENNELONG TWENTY20 AUSTRALIAN EQUITIES FUND
Attached is our most recently updated Fund Review on the Bennelong Twenty20 Australian Equities Fund.
- The Bennelong Twenty20 Australian Equities Fund invests in ASX listed stocks, combining an indexed position in the Top 20 stocks with an actively managed portfolio of stocks outside the Top 20. Construction of the ex-top 20 portfolio is fundamental, bottom-up, core investment style, biased to quality stocks, with a structured risk management approach.
- Mark East, the Fund's Chief Investment Officer, and Keith Kwang, Director of Quantitative Research have over 50 years combined market experience. Bennelong Funds Management (BFM) provides the investment manager, Bennelong Australian Equity Partners (BAEP) with infrastructure, operational, compliance and distribution services.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2016 (pdf format)
Insync Global Titans Fund
29 Nov 2016 - Australian Fund Monitors
The Insync Global Titans Fund returned -3.80% in October, compared to the MSCI All Country World ex-Australia Net Total Return Index in $A, which returned -1.10%.
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29 Nov 2016 - Insync Global Titans Fund
By: Australian Fund Monitors
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| Fund Overview | Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio. |
| Manager Comments | The performance was driven by positive contributions from the holdings in Time Warner, Microsoft, PayPal, Visa and Moody's. The main negative contributors were Unilever, Comcast, eBay, BAT and Zimmer. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside. Over 50% of the Fund is currently protected using their put protection strategy. Click below to read the latest Fund Manager Report. |
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Fund Review Pengana Absolute Return Asia Pacific Fund October 2016
28 Nov 2016 - Australian Fund Monitors
Latest Fund Review is now available on Pengana Absolute Return Asia Pacific Fund, which has over 7 years of positive track record and an annualised return of 8.92% p.a.
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28 Nov 2016 - Fund Review Pengana Absolute Return Asia Pacific Fund October 2016
By: Australian Fund Monitors
AFM Fund Review - October 2016 (pdf format)
PENGANA ABSOLUTE RETURN ASIA PACIFIC FUND
Attached is our most recently updated Fund Review on the Pengana Absolute Return Asia Pacific Fund.
- The Pengana Absolute Return Asia Pacific Fund ("PARAP") was established in 2008 by portfolio managers Antonio Meroni and Vikas Kumra. The Fund is a feeder fund into a Cayman Islands AUD share class fund.
- The Fund invests both long and short in Asia Pacific equities, including in Australian and New Zealand, after a stock specific "event" has either occurred or been announced and the portfolio aims to be uncorrelated to the underlying equity markets. A combination of the Manager's experience, thorough research and continuous back- testing identify the most attractive of these events.
- Risk controls include limits on individual positions as well as gross and net exposure. Limits are in place for option exposure and cash borrowing, with stop loss limits on individual positions. Overall the manager is looking to derive returns from the event strategies as opposed to any currency or market exposures.
- Since inception, the Fund has an annualised return of 8.92% p.a., compared to the MSCI ACWI Asia Pacific Price Index's return of 3.83% p.a.
For further details on the Fund, please do not hesitate to contact us.
AFM Fund Review - October 2016 (pdf format)
Pengana PanAgora Absolute Return Global Equities Fund
25 Nov 2016 - Australian Fund Monitors
Pengana PanAgora Absolute Return Global Equities Fund rose 1.40% in October. The Fund has a low systematic risk (beta) to the ASX 200 and the MSCI World Indices of 0.08 and 0.09 respectively.
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25 Nov 2016 - Pengana PanAgora Absolute Return Global Equities Fund
By: Australian Fund Monitors
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| Fund Overview | PanAgora believes the best way to find opportunities in the global markets is to combine fundamental analysis with robust quantitative techniques in order to filter the investment universe and select the investments. The Fund invests primarily in listed equity securities from a global universe of developed markets and a select group of emerging market countries. The Fund's objective is to seek absolute returns by identifying and exploiting multiple inefficiencies that may exist in global equity markets. These inefficiencies are primarily exploited through the use of a long/short equity strategy which aims to construct a portfolio that is generally neutral to market movements. As such the performance of the investment strategy is largely independent of the market's performance. The Fund seeks to achieve its objective by using a diversified set of strategies that have low correlation to one another. In addition, because many of these strategies are designed to generate profit under different market conditions, their combination is expected to result in more stable returns over time than any individual strategy in and of itself. |
| Manager Comments | The October return was largely driven by the strong performance of the Fund's international long-term alpha model, which contributed +0.96%. A deeper look at this model revealed that investors favoured higher quality and previously neglected stocks that were trading at compelling valuations. The long-term model in the US also contributed positively (+0.5%) to the Fund's return. However, the intermediate and short-term arbitrage strategies underperformed, detracting -0.06% from the overall return. Click below to read the latest Fund Manager's Report. |
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